Lifetime ISA questions

Qwerty1_23

Hi 

I have a few questions regarding a L-ISA and if it is worth me taking one out. 

I’m 39 this year - further info below; 

Currently max out ISA
Have significant savings in high interest easy access accounts - £200k 
Contribute via business I own into a pension
I would use disposable income to pay into LISA - paid via dividends. 

Do people think a LISA is a worthwhile option in my situation? 

Thanks 
H

NoMore

What's the reason for LISA ? Buy a house (must be first time buyer) or for retirement ?

If for retirement, what tax rate do you currently pay ? If high rate tax payer then pension is better for retirement, basic rate Lisa can be better but with a later age access (LISA is 60, Pension will be 57 for you). 

EDIT: If your a Ltd company director then I think pension is always the most tax efficient.

masonic

Are you saving towards your first home? If so, with £200k in savings already, it probably wouldn't make sense to delay for a year to get a £2k bonus via the LISA scheme.

Qwerty1_23

NoMore said:

What's the reason for LISA ? Buy a house (must be first time buyer) or for retirement ?

If for retirement, what tax rate do you currently pay ? If high rate tax payer then pension is better for retirement, basic rate Lisa can be better but with a later age access (LISA is 60, Pension will be 57 for you). 

EDIT: If you’re a Ltd company director then I think pension is always the most tax efficient.

LISA for pension - own house already. 

Looks like it’s more efficient to pay directly into pension rather than use a LISA

dcs34

If you've maxed out your ISA contributions this year (£20k) then you won't be able to pay into a LISA this tax year, as it's £4k allowance eats into your overall ISA annual allowance.